Auckland International Airport Narrows Fiscal-Year Guidance
By Ben Collins
WELLINGTON, New Zealand-Auckland International Airport has tightened its full-year profit guidance after strong gains in passenger numbers and a large investment to upgrade it facilities.
The company on Monday said its after-tax profit for the six months to Dec. 31 was 17% higher than the prior period at 165.9 million New Zealand dollars ($123 million.) Revenue increased 6.9% to NZ$332.4 million, with a 2.7% increase in aeronautical revenue driven by passenger growth and increasing runway movements, partly offset by international and regional aeronautical price decreases.
"We continued to invest more than one million [dollars] every working day on our core airport infrastructure and there are now 53 aeronautical projects underway across the airport, each in excess of one million," said chairman Henry van der Heyden.
The company also saw a 10.2% increase in retail income thanks to total passenger numbers growing 6.4% on-year, combined with strong duty-free, food and beverage and lounge performances. Its investment-property rental income increased due to the development of new properties, strong growth in the existing portfolio and the performance of its budget hotel.
Auckland airport's earnings before interest expense, taxation, depreciation, fair value adjustments and investments in associates, or Ebitdafi, increased 6% to NZ$250.1 million.
Meanwhile, last year the company announced it would sell its stake in North Queensland Airports, in Australia, for NZ$370 million.
"The sale will ensure that we can focus on growing our New Zealand travel, trade and tourism businesses and can recycle the proceeds of the sale into supporting the significant investment in aeronautical infrastructure at Auckland Airport over the next five years," Mr van der Heyden said.
The company said that as a result of the strong performance during the first half, it was tightening its fiscal 2018 after-tax profit guidance to between NZ$250 million and NZ$257 million.
(END) Dow Jones Newswires
February 15, 2018 16:05 ET (21:05 GMT)Copyright (c) 2018 Dow Jones & Company, Inc.